Top 10 Final Expense Life Insurance Companies

When looking for the top 10 final expense life insurance companies or burial insurance companies, we recommend that you choose a company that specializes in the area of final expense insurance. In this article, we will give you an overview of who we feel are offering the best final expense life insurance policies to help you find the company that fits your individual needs.

Final expense insurance is also known as funeral insurance, and burial life insurance policies are small whole life policies ranging from $2,000 to $25,000. The death benefit’s primary purpose is to cover burial and other final expenses. These policies pay out a lump sum death benefit to the beneficiary upon the death of the policyholder.

There are some things you should look for in final expense life insurance companies. The first thing is the company’s financial strength. A key indicator is how solvent a company maybe 20 years or longer with its current financial strength.

Typically any company who falls off an A- or better ranking is not recommended. Companies who are “A” rated have a long-standing history of giving death benefit payout on time. A safe and secure company will be able to pay claims faster (in as little as 24 hours of days of receiving a death certificate).

In order to help you in searching for the best final expense life insurance or burial insurance company, we at Funeral Funds have put together our top 10 life insurance companies whom we feel are currently offering the best in final expense life insurance policies.

OUR TOP 10 FINAL EXPENSE LIFE INSURANCE COMPANIES

FINAL EXPENSE LIFE INSURANCE COMPANIES - 1MUTUAL OF OMAHA

First Year in Business: 1909

Business Rating: A.M. Best A+

Age Availability: 45-85

Face Amount Range: $2,000-$40,000

Mutual of Omaha has a whole life final expense insurance policy called Living Promise. It is a whole life final expense policy that builds cash value.

Living Promise is available for people 45 to 85 years old, with no separate classifications for a smoker. The face amount ranges from $2,000 to $40,000. The Living Promise offers a great level benefit policy.

In order to qualify for this policy, you will need to undergo a health background check including the medical information bureau and the prescription drug database. Build charts are also a requirement, and phone interviews are done randomly.

Living Promise comes with an accelerated death benefit rider which pays out if the policyholder is determined by a medical professional with a terminal illness and given less than 12 months to live. Also pays out early if the insured is confined to a nursing home for more than 90 days and expected to remain in confinement for life.

Mutual of Omaha is one of our favorite choices for funeral funding due to their financial strength and low prices.

FINAL EXPENSE LIFE INSURANCE COMPANIES - 2TRANSAMERICA

First Year in Business: 1904

Business Rating: A.M. Best – A+

Age Availability: 45-85

Face Amount Range: $1,000-$50,000

Transamerica offers three final expense insurance options: Immediate Solution, 10 Pay Solution, and Easy Solution.

Transamerica’s Immediate Solution final expense product is a combination of competitive premiums and lax underwriting. They offer no waiting period policy to people with COPD, emphysema, or kidney disease.

The Immediate Solution can be purchased before the age of 85 and valid for the policyholder’s life until the age 121. No medical exams or health questions are required. Acceptance is guaranteed regardless of age or pre-existing conditions. The age of the policyholder determines payouts, and the minimum payout is $1,000.

FINAL EXPENSE LIFE INSURANCE COMPANIES - 3GERBER LIFE

First Year in Business: 1967

Business Rating: A.M. Best A

Age Availability: 50-85

Face Amount Range: $5,000 – $25,000

Not Available in AZ or MT

The Gerber Life Guaranteed life insurance is a whole life policy designed for clients with acute health wanting to secure affordable final expense insurance. It has no medical exam or no questions asked. If you have significant health problems but still want to purchase a final expense policy, Gerber’s Guaranteed Life is an option for you. Face amounts are between $5,000 to $25,000.

Gerber is an excellent choice for senior looking for final expense insurance since they offer some of the cheapest prices for guaranteed issue life insurance. (UPDATE: Gerber recently raised their pricing, so other plans may be a better fit for your budget).

Premiums are fixed for the life of the policy, and there is a cash value that accumulates tax-free. Cash value can be used to pay premiums or borrowed against.

Guaranteed issue is a two-year graded benefit policy with a two-year waiting period. If the insured dies from accidental death, the full face amount will be paid as part of the accidental death benefit. However, if the policyholder dies from a natural cause during the two-year waiting period, the beneficiary will receive a return of premiums plus 10%.

If you are in good to moderate health, we will always help you qualify for a better plan with immediate death benefits rather than this plan.

FINAL EXPENSE LIFE INSURANCE COMPANIES - 4AIG – AMERICAN GENERAL LIFE INSURANCE COMPANY

First Year in Business: 1919

Business Rating: A.M. Best – A

Age Availability: 50-85

Face Amount Range: $5,000-$25,000

Not Available in: ME, NY and PA

American General Life Insurance Company introduced guaranteed issue whole life policy in 2017 (and it’s a great product!).

You can now purchase life insurance from AIG without a medical exam or health questions. The policy is available for ages 50 to 85 with coverage up to $25,000. You can get this policy for your parents or grandparent who cannot afford the premiums.

AIG has some of the lowest rates for guaranteed issue life insurance compared to other companies in the market.

They are the only carrier that offers two free riders on every policy. There’s a terminal illness rider that lets you access some of the death benefits if you were diagnosed with terminal illness. And, chronic illness rider that enables you to access some of your death benefits if you developed a chronic illness and been unable to perform activities of daily living.

Guaranteed issue policy from AIG comes with a graded death benefit (there is a two year waiting period). If the policyholder dies in the first two years, the beneficiary will only get 110% of the premiums paid into the policy. The full death benefit payout will be received if the insured dies in the third year of the policy.

If you are in good to moderate health, we will always help you qualify for a better plan with immediate death benefits rather than this plan.

FINAL EXPENSE LIFE INSURANCE COMPANIES - 5FORESTERS FINANCIAL

First Year in Business: 1874

Business Rating: A.M. Best – A

Age Availability: 50-85

Face Amount Range: $2,000-$35,000

Forester’s Plan Right whole life policy is a simplified issue final expense life insurance policy.

Most people choose this policy because the price is reasonable. The policy is priced well, making it one of the most affordable final expense insurance companies. The face amount ranges from $2,000 to $35,000, and you can purchase it up to age 80.

The face amount becomes a $15,000 life insurance policy to applicants who are 81 to 85 years old.

Simplified issue insurance policy does not require a medical exam, but the applicants need to answer some health questions. Any yes answers on the application will put you in a modified or graded classification.

A personal history interview is required, with a prescription check. The underwriting guideline is relaxed, so many applicants can qualify.

Foresters is another of our favorite choices for funeral funding due to their financial strength and low prices.

ASSURITY

First Year in Business: 1890

Business Rating: A.M. Best- A

Age Availability: 0-80

Face Amount Range: $5,000-$50,000

Assurity offers simplified level benefit whole life and graded benefit policies.

It is a great option for seniors looking for an affordable final expense policy. The whole life product provides immediate whole life coverage from day 1. The death benefit ranges from $5,000 to $50,000 until the age of 65. For 66 to 80 years old, the death benefit amount offered is $5,000 to 25,000.

Premiums and death benefit stay the same for the life of the policy.

LifeScape is a simplified whole life policy, it does not require a medical exam, but the applicant is subject to health interview questions. People with COPD and emphysema don’t have to endure a waiting period or pay a higher premium with Assurity.

The price is the same price for modified and graded benefit, but the payout is different depending on answers to qualifying questions.

AMERICO

First Year in Business: 1909

Business Rating: A.M. Best – A

Age Availability: 50-85

Face Amount Range: $2,000-$30,000

Americo has different whole life insurance products that cover final expenses.

Protector I and II require basic health screening as well as health questions. Their Ultra Protector Series is designed for people 50 to 85 years old. The death benefit ranges from $2,000 to $30,000 in coverage.

The Ultra Protector Plan offers 100% day one coverage for people with COPD or emphysema, and it also provides immediate coverage for some other high-risk conditions. Regardless of your health issues, there is a chance that Americo can offer low-cost final expense policy that has no waiting period.

Their final expense policies offer guaranteed level premiums and coverage cannot be canceled due to age or health issues.  Ultra-Protector I and II have accelerated benefit rider which allows up to 50% of the death benefit will be paid to the policyholder if he is diagnosed with a terminal illness.

AETNA- AMERICAN CONTINENTAL

First Year in Business: 1853

Business Rating: A.M. Best – A

Age Availability: 45-89

Face Amount Range: $3,000-$35,000

Not Available in: CA, MD, NY, & VT

American Continental Insurance Company provides Aetna’s final expense insurance.

Aetna is among the few companies that offer coverage to people up to 89 years old; this feature allows them to offer great value to many seniors who are looking for final expense coverage.

The Aetna burial life insurance is a whole life insurance policy guaranteed up to age 121. The premiums and the death benefit is level and will never change as long as premiums are paid. The policy builds cash value that can be used to cover premiums if there is enough money in the account. You can withdraw funds or take a loan against the cash value.

They have a relaxed underwriting process and have no height, and weight chart and they do not check the Medical Information Bureau as part of their application. There is three levels of coverage available: Immediate death benefit, Graded death benefit, and Modified death benefit.

ROYAL NEIGHBORS OF AMERICA

First Year in Business: 1895

Business Rating: A.M. Best – A-

Age Availability: 50-85

Face Amount Range: $5,000-$25,000

The Royal Neighbors of America has a simplified issue whole life and graded death benefit products for its final expense life insurance.

You will just need to answer a few simple health questions, and any yes answers will still allow applicants between 50 and 85 years old for a graded death benefit. There are no preferred or sub-standard rates issues; they only have ratings for tobacco and non-tobacco users.

Royal Neighbors of America’s final expense life insurance has the most lenient underwriting out of all top final expense insurance companies. They are the most diabetic friendly final expense insurance carrier in the nation. They are also known to insure applicants with other health issues.

UNITED HOME LIFE

First Year in Business: 1937

Business Rating: A.M. Best – A-

Age Availability: 20-80

Face Amount Range: $5,000 to $100,000

United Home Life offers simplified issue product for people 20 to 80 years old.

Their simplified issue is called United Home Life Express Issue Premier. The death benefit amount ranges from $5,000 to $100,000 up until the age of 60. If you are 61 to 80, you can qualify for face value for up to $50,000. Senior applicants can find this policy a great option.

There are three final expense life insurance products: Express Issue Premier, Express Issue Deluxe, and Provider. None of these require a medical exam. They are all permanent policies which last a lifetime as long as premiums are paid.

Their simplified issue product is an affordable option for healthier applicants and those with type II diabetics’ non-insulin dependent.

THREE TYPES OF FINAL EXPENSE LIFE INSURANCE COVERAGE

There are three different kinds of coverage options in a funeral expense life insurance they are level, modified and graded death benefit.

The significant difference is the manner in which the death benefit will be issued to the beneficiary at the time of the insured death. The kind of coverage you will qualify for depends on the insurance company and your answer to health questions on the application.

LEVEL DEATH BENEFIT

A level death benefit pays an immediate benefit to your beneficiary; it is the best final expense insurance coverage.

You are immediately covered from day one and 100% of the death benefit is guaranteed upon your death. You will need to be within the height and weight guidelines with no major health issues.

Sample questions that will be asked to qualify for level death benefit approval.

  • Are you currently hospitalized or bedridden?
  • Are you receiving hospice, home health care or nursing home care?
  • Have you received an organ transplant or inpatient surgery?
  • Are you diagnosed with or been treated for Dementia, Alzheimer, Memory loss, Downs Syndrome, Organic Brain Disease, Lou Gehrig’s Disease, Mental Incapacity, Huntington’s Disease, Cystic Fibrosis or Cerebral Palsy?
  • Are you diagnosed with AIDS, ARC or tested positive for HIV?
  • Have you been in a diabetic coma?
  • Are you advised to have an amputation due to diabetes or other diseases?
  • Have you been diagnosed by a physician with less than one year to live?
  • Answering “yes” may result in a decline in level death benefit coverage.

GRADED DEATH BENEFIT

This is the type of final expense insurance with a two-year waiting period before you will be fully covered.

FOR EXAMPLE: If you die in the first year of the waiting period, your beneficiary will receive 30% of the face amount in effect. If you die during the 2nd year, 70% of the face amount will be received by your beneficiary. In year three onwards 100% of the face amount will be received.

MODIFIED DEATH BENEFIT

This is the type of final expense insurance with a two-year waiting period before the face value will be paid to the beneficiary.

A graded death benefit policy only pays 100% of the death benefit during the waiting period if the insured dies from an accident. 100% of death benefit will be received after the two-year waiting period. If the insured dies before 24 months, the beneficiary will only receive the full return of premiums plus interest usually 10%.

Your answer to the medical or health questions on the application will determine if you will qualify for a graded death benefit. This coverage includes many high-risk health conditions that would usually be declined with traditional underwriting.

Guaranteed acceptance

This is the type of life insurance burial policy that accepts every applicant; guaranteed acceptance approves application regardless of health condition.

This coverage has a graded or modified death benefit. It has a two-year waiting period before the full payout of the death benefit.

All deaths from an accident will receive 100% of the death benefit regardless of the policy year. If natural death occurs before the two-year waiting period, the beneficiary will only receive a full refund of premiums plus 10% interest.

HOW TO FIND THE BEST FINAL EXPENSE LIFE INSURANCE POLICY

The best way to get the right final expense insurance company for you is by comparing offers from different final expense or burial insurance companies to see which one suit your needs best.

You will need the aid of a qualified independent final expense insurance agency like Funeral Funds to shop the market for you. Funeral Funds is not a “captive agent”, instead, we represent many different top-rated insurance companies.

We will evaluate your health history and your goals to identify which final expense companies will consider your health most favorably. We will identify the final expense carriers that are most lenient on your health issues. We will only recommend the ones that will offer you the best price and coverage that will protect you immediately.

Thank you for visiting us and reading our article on the Top 10 Best Final Expense Life Insurance Companies. Please call us at (888) 862-9456 if you have any questions.

What kind of burial policies should I avoid?

TV AND MAGAZINE ADVERTISEMENTS – Most burial policies or final expense policies you see advertised on television or in magazines are sold as “the no-brainer way” to shop for this protection.

In reality, most of these policies rely on you having NO BRAIN to purchase them.

Just about everyone is eligible for immediate coverage and better pricing allowed by these heavily advertised policies that cost an arm and leg.

To make a long story short, it is better to shop with a specialist in burial insurance, like FuneralFunds.com, than to sign up with a company that spends ba-zillions of dollars each month advertising on television and in magazines.

INCREASING PRICE POLICIES – Those TV and magazine final expense policies may increase in price every five years or have a two-year waiting period before your benefits kick in! What in tarnation!?!

These policies aren’t all they’re cracked up to be, and you often end up at the short end of the stick by purchasing burial insurance this way.

These tricky television magazine snake oil salesmen lure you in with an attractive rate, only to have the cost of your insurance increase every five years until you cannot afford the premiums, then you must cancel your policy.

What happens after you cancel the policy? You’ll die and will have wasted all that money because you bought a policy that increases in price as you get older. These policies just don’t cut the mustard for most folks!

Avoid policies that increase in price every year or end at a certain age. You don’t want your family to get hung out to dry when they need this coverage the most.

Seen any misleading internet advertisements?

Yeah, the old “bait and switch” is still alive and well in America….buyer beware!

Why choose Funeral Funds for my burial policy?

Most life insurance agents are fine, respectable people. There are, however, the classic “snake oil” life insurance agents, who will sell you the easiest and most expensive policy possible. The guaranteed issue folks claim you don’t even need to talk to an agent (but you will need to wait 2 years for your coverage to begin…even if you’re healthy). Answering a few health questions will often get you immediate coverage and MUCH better rates.

Avoid these people at all costs!

For the rest of the life insurance agents, who are fine respectable people, they are most often generalists. They deal with all kinds of life insurance policies. They are Jack of all trades and Masters of none. They are nice people, but they are not the logical choice if you want the best pricing and the best policy.

We work with 20+ final expense companies, so we can get you qualified for the best price plan with the intent of getting folks like you immediate coverage when possible.

We have to admit that, for the average burial insurance final expense insurance shopper, all the companies and options will often leave you more confused than a woodpecker in a concrete forest.

How can Funeral Funds help me?

Most insurance agents don’t cut the mustard when it comes to getting you the most affordable coverage. Getting affordable burial insurance doesn’t have to cost an arm and a leg.

Our job at Funeral Funds is to be the most knowledgeable burial insurance experts available. By doing so, we can knock it out of the park and get you the most accurate quote and affordable rates.

Once we know more about your age and health history, we can accurately give you burial insurance quotes from the final expense companies that are the best fit for you.

The reality is that most inexperienced and less knowledgeable insurance agents just don’t cut the mustard and will cost you loads of money by selling you more expensive policies.

It is always in your best interest to work with an independent brokerage, such as Funeral Funds. With access to all the best final expense insurance companies, we will help you understand your best options, given your current age, health, and financial situation.